From ModMyiFone - Wiki

This guide is outdated. The current method can be found here.

-- 09.09.07 pf --

Much has transpired in the last couple months of iPhone modding! We used to have to open up Terminal and run all our hacking from the command line, and are now able to install 3rd party programs and drag and drop files to/from our iPhones without any command line at all!

This brief guide will teach you how to get your iPhone set up to where you can drag and drop files to/from your iPhone, as well as install programs, etc. Its a lot of fun. ;) The entire procedure from virgin iPhone to one running 3rd party apps should take no more than 10 minutes.

You will need:

--An iPhone running the 1.0.2 firmware.
NOTE: If you are NOT running 1.0.2 firmware, check here for the 1.1.1 Getting Started instructions.

--The iPhone 1.0.2 restore file. This is a 91MB download, and can be found here.

Step 1

Before we get started, make sure iTunes is quit, and you have also quit the iTunes helper. To do this, open up Activity Monitor (in the Utilities folder within the Applications folder in OS X), scroll down to iTunes Helper, click it, and click Force Quit in the top left of the window. This will assure that iTunes doesn't start up anytime during our little exercise, which is good. AFTER you have done this, plug your iPhone in to the computer.

Step 2

First, make sure you do not have iNdependence running.

Download and run AppTapp.

Deactivate the iPhone automatic synchronization in iTunes before proceeding and close iTunes.

Click Continue.

Choose Firmware 1.0.2, and click Continue.

AppTapp will take about 90 seconds to run through its deal. Your iPhone will display a Please Connect to iTunes message, as well as restart once or twice. Don't worry.

You will get a Success message.

Step 3

Now, on your iPhone, you will have a new icon for Installer. Click it. It will most likely ask you to connect to your WiFi network. If you don't have one, you're screwed. ;) Assuming you do, connect to it.

Good. Wait till you see the WiFi connected signal on the top bar of your iPhone (where it says what time it is, etc). When you do, click and install these apps, in this order:

Community Sources
BSD Subsystem - this will take a couple minutes.
OpenSSH

Step 4

All right, thats it! Now we're ready for setting up your iPhone with drag and drop file transfer.